Is Deck Medic allowed to restrict a franchisee from soliciting or hiring employees of the franchisor?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement Exhibit 2 Confidentiality Agreement
THIS EXHIBIT IS FOR REFERENCE PURPOSES ONLY AS A SAMPLE FORM CONFIDENTIALITY AGREEMENT THAT FRANCHISOR MAY APPROVE FOR USE BY FRANCHISEE – BEFORE USING WITH AN EMPLOYEE OR CONTRACTOR FRANCHISEE SHOULD HAVE THIS AGREEMENT REVIEWED AND APPROVED BY AN INDEPENDENT LOCAL ATTORNEY HIRED BY FRANCHISEE
CONFIDENTIALITY AGREEMENT (Sample Only)
This Agreement (the "Agreement") is entered into by the undersigned ("you") in favor of:
[Insert On the Line Below Name of Franchisee that Owns and Operates the Deck Medic Business] (hereinafter referred to as "us", "our" or "we")
Recitals and Representations
WHEREAS, we are the owners of a licensed Deck Medic Business (hereinafter referred to as the "Deck Medic Business") that we independently own and operate as a franchisee;
WHEREAS, you are or are about to be an employee, independent contractor, officer and/or director of a Deck Medic Business that is independently owned and operated by us;
WHEREAS, in the course of your employment, independent contractor relationship and/or association with us, you may gain access to Confidential Information (defined below in this Agreement) and you understand that it is necessary to protect the Confidential Information and for the Confidential Information to remain confidential;
WHEREAS, our franchisor, Deck Medic, Inc. is not a party to this agreement and does not own or manage the Deck Medic Business but is an intended third party beneficiary of this Agreement; and
WHEREAS, this Agreement is not an employment agreement and is only a confidentiality agreement in connection with information, materials and access that may be provided to you in connection with the Deck Medic Business.
NOW THEREFORE, you acknowledge and agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
Based on the 2024 Deck Medic Franchise Disclosure Document, there is no explicit mention of restrictions on soliciting or hiring employees of the franchisor. However, the document does include a sample confidentiality agreement that franchisees may use with their employees and contractors. This agreement, included as Exhibit 2, ensures that individuals associated with a Deck Medic Business protect the confidential information they may access during their association with the franchisee.
While the confidentiality agreement aims to protect sensitive business information, it does not directly address the solicitation or hiring of the franchisor's employees. The FDD outlines various restrictive covenants related to unfair competition, both during and after the franchise term, focusing on preventing franchisees from engaging in activities that could harm the franchisor's business interests. These covenants primarily concern competitive business activities, customer diversion, and the use of confidential information.
Therefore, it remains unclear whether Deck Medic has specific policies in place that would prevent a franchisee from soliciting or hiring employees of the franchisor. A prospective franchisee should seek clarification from Deck Medic regarding this matter to fully understand any potential restrictions or guidelines.
In summary, while the FDD touches on confidentiality and non-compete aspects, it does not provide a definitive answer on whether Deck Medic restricts franchisees from soliciting or hiring the franchisor's employees. Further inquiry is recommended to gain a comprehensive understanding of the franchisor's policies in this area.